Sunday, June 12, 2011

Diminishing Returns in Shaving

Every six months or so, I drop by Tim Harford's website to catch up on his Dear Economist column. Today was my day to catch up and here is my favorite quote in response to a reader who wants to know the best way to save on razors:
Hang on, “thrilled” is putting it a bit strongly, isn’t it? I don’t know anyone whose pulse was set racing by the arrival of the Mach 3. It was, at best, mildly intriguing. Don’t get me wrong, it’s a decent razor. But let’s be clear, the main innovation wasn’t the progress from two to three blades, was it? It was from no blades at all to one. That’s really where the shaving revolution started. It’s what we economists call diminishing returns.
I wonder if Harford's response will affect this reader's marginal propensity to shave.

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